New Delhi, April 30 (NationPress) Government incentives and infrastructure investments are significantly enhancing local electric vehicle (EV) production. A series of policy initiatives and infrastructure enhancements are in progress to close the gap and propel the market towards the 2030 objectives, as revealed in a report released on Wednesday.

In 2024, India’s passenger vehicle (PV) sales experienced a growth of 4.6% year-on-year, exceeding 4.3 million units. Notably, Battery Electric Vehicles (BEVs) represented 2.5% of total PV sales, reflecting a remarkable 16% year-on-year increase, according to the latest ‘India Passenger Vehicle Model Sales Tracker’ by Counterpoint.

The surge in passenger BEV sales is linked to the introduction of several new models such as the Tata Curvv.ev, MG Windsor, BYD Seal, BYD eMax 7, and the refreshed Tata Punch.ev.

The Indian government has outlined ambitious goals for EV adoption, targeting 30% penetration in the passenger vehicle sector, 80% in the combined two-wheeler and three-wheeler sectors, and 70% in commercial vehicles by 2030.

Abhik Mukherjee, an automotive market analyst, noted that while US tariff increases on automobiles and components pose risks to India’s component exports, they simultaneously create opportunities for enhancing exports to other markets.

With Maruti Suzuki, the largest PV manufacturer in India, and international BEV leaders like Tesla and VinFast entering the market with competitively priced models, BEVs are expected to claim 5% of the PV market by the end of 2025.

Mukherjee emphasized the accelerating pace of EV adoption in the two-wheeler category.

Electric two-wheelers captured a 6.2% share of total two-wheeler sales in 2024, demonstrating an impressive 36% year-on-year growth.

With the support of incentives and tax reductions, electric two-wheelers are increasingly utilized for last-mile delivery and micro-mobility solutions.

“Food delivery and quick commerce companies are broadening their use of electric two-wheelers to foster a more sustainable and environmentally friendly future. Additionally, urban commuters are increasingly opting for EVs over traditional powertrains for their daily travel,” the report noted.

Although EV presence in the commercial vehicle (CV) sector remains relatively low, the electric three-wheeler segment is leading the transition.

In 2024, electric three-wheelers made up 55% of the three-wheeler market, indicating that one in every two three-wheelers sold was an EV. This high percentage is primarily driven by strong demand from the last-mile delivery sector, as stated in the report.